Hyderabad - infrastructure driving city real estate

From the aging rules of Shahs and Nizams, today the city of Hyderabad has excellent infrastructure such as: an international standard green field airport; an outer ring road (ORR) of more than 150 km; eight lane expressway; inner radial roads providing swift connectivity to ORR; proposed Metro Railway that is expected to be operational by next year; and low land rates that make it a convivial real estate destination. The city has changed its economy dynamics from the pearl and diamond trade in the 18th century to industrialisation in the 19th century to BFSI & IT/ITeS in the early 1990s till today. At present, the city is home to more than 1,300 IT/ITeS firms, which includes all major global and national corporations. The growth of the “cyber city” in Hyderabad is the major pull factor of the residential real estate market, which is primarily investor driven but hasn’t seen much in terms of price appreciation. This is mostly due to political uncertainties from the past which pulled down and then stabilised residential prices; for instance, in the CBD locations of Banjara Hills and Jubilee Hills, capital values range anywhere between INR 5,000 to INR 8,000 per sq ft, which has been on the same level since 2008. To the contrary of the stable capital values, buyers looking for either investment or self-use in mid-range housing or affordable housing can positively invest in the western zone of Hyderabad, which includes micro markets like Hitec City, Madhapur, Miyapur, Kukatpally, Gachibowli, Kokapet and Chanda Nagar. This is further supported by the upcoming future development in the zone and the expected rise in demand from IT/ITeS. Currently, capital values in these areas are in the range of INR 2,500 to INR 5,000 per sq ft. It is the right time to invest in Hyderabad real estate, as a positive outlook is expected for Hyderabad with the Telangana Bill passed by the government. This move will not only push the capital values for residential properties but will also revive the renewed interest from the IT/ITeS and BFSI sector both from domestic and international multinationals.


About the author

Sachin Sharma, Manager, Research, has more than 5 years of experience in the real estate sector, with proficiencies in market research and analysis, spanning all major real estate sectors, i.e commercial, residential, retail, industrial and land.

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